Tibet Pharmaceuticals, Inc. Announces Receipt of Non-Binding "Going Private" Proposal at $3.00 Per Share
Tibet Pharmaceuticals, Inc. (NASDAQ: TBET) today announced that its Board of Directors has received a non-binding proposal letter from its Chairman and Chief Executive Officer, Mr. Hong Yu, for Mr. Yu to acquire all of the outstanding shares of the Company's common stock not currently owned by Mr. Yu, in a going private transaction for $3.00 per share in cash subject to certain conditions. According to the proposal letter, the acquisition is intended to be financed with a combination of debt and equity capital to be secured by Mr. Yu. Mr. Yu currently beneficially owns approximately 22.1% of TBET's common stock. A copy of the text of Mr. Yu's proposal letter is set forth at the end of this press release.
TBET's Board of Directors has formed a special committee consisting solely of independent directors (the "Special Committee") to consider, among other things, any proposal made by Mr. Yu, and the Special Committee will retain an independent counsel as its legal advisor to assist the Special Committee in its work. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that a transaction with Mr. Yu or any other transaction will be approved or consummated. The Company does not intend to disclose developments regarding these matters unless and until its Board of Directors determines there is a need to update the market.
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